The problem of real-time irrigation scheduling under limited water supply is considered. The goal is to develop an irrigation operation policy which maximizes crop yields and is responsive to current season changes in weather and other variables. Because irrigation decisions are sequential and dependent on crop and soil water status, and also because crop yields can only be known at the end of the season, the decisions are arrived at by a two-stage process. In the first or the design stage, irrigations are planned for the entire season at weekly intervals using historical data and an optimal irrigation scheduling model. In the second stage, the decisions for the subsequent weeks are revised each week after updating the status of the system with real time data up to that week and solving the irrigation optimization model once again for the new conditions. Thus, each week an irrigation decision is made, the entire planning horizon is kept in view. The procedure is illustrated by application to a case study.